Basic firm/industry life cycle of Motor manufacturing

The above model can be used for analysing the conditions that might be expected at each stage of the lifecycle. In the case of a mature industry such as the motor manufacturing it can be expected that competition will be intense, prices will be very competitive and profits will be lower than at the growth stage and finally the rates will show little increase. The strategic emphasis is likely to be on product differentiation and market segmentation to gain a competitive edge. Another key strategy is to reduce costs at all stages and to improve productivity.